NYC hottest EDM club, PachaNYC has ended their era of Dance Music. What's next?

Pacha NYC will be closing its doors for good this year. The well-known NYC Electronic Dance Music nightclub has reached its share of events and raves and will be celebrating its last New Years Eve party with a 72 hour marathon with Sound Factory’s former resident DJ Jonathan Peters. PachaNYC has been around for a good 10 years and it has been a second home to New York’s nightclub attendees and people from all over the world who travel to New York and look for a place to see their favorite DJs play the sound of House, Techno, and Dubstep. This weekend DJ Erick Morillo will be playing at the 10-year anniversary party. He was one of the first investors in the 4-floor venue, which has brought famous Dj’s such as Afrojack, Tiesto, Nicole Moudaber, and Dirty South. I remember my first time at Pacha was in November of 2010. Once I stepped foot in the club I felt the energy and positivity all over the venue. Random people would come up to me to talk and make friends. I was like “Is this real?” Living in NY, I always felt people were very standoffish. The workers of the club were very nice and they made sure their customers were well taken care of. The second time I stepped foot in the club was in January of 2011, for my brothers birthday. The line was around the corner and I was with a group of people who just wanted to get in. We actually met one of the bouncers who lived in the same neighborhood as I, and he let us skip the line. I felt like we were stars. After that day, PachaNYC became my second “home.” I became a resident, coming every Friday and Saturday after that. About a month later I found out why it was so crowded that day and it was because “Afrojack” was playing. I had no idea who he was at the time. All I know that it was one of the best nights of my life! After attending religiously every weekend for the next 3 years, I began to work and promote. I felt like it was what I love to do and to be a part of something that makes people have a goof time and meet people from all over the world for the love of music was what made me happy.

A few months back, one of NYC’s biggest promoters Rob Fernandez suddenly passed away in July 10, 2015. He was the Director of Promotions and Booking for PachaNYC for the past 10 years. Alongside Eddie Dean, the owner of Pacha, Rob brought in EDM DJ’s such as Danny Tenaglia and Chris Liebing to play at the legendary NYC club. Every weekend the doors opened to a huge crowd 19 and over and closed after any other nightclub in NYC. Partygoers would still be walking in at 5:00am to continue their nights of partying leaving the place at sunrise. After Rob passed away they put of the #HouseofRob sign in front of Pacha to pay tribute to all his hard work.

But, why close down? In reality, as some of us may know there has been nightclubs throughout the years like “The Tunnel,” “Club Exit,” “Limelight,” and “Sound Factory.” History has shown that when a club shuts down, it gets renovated and changes its name. In my opinion, the club will renovate and possible become the future “House of Rob,” to represent Rob Fernandez’s legendary work throughout the Electronic Dance Music scene. In reality, Pacha has seen a decline in patrons coming possibly due to the opening of SpaceNY and an increase in EDM artist playing at such clubs like Marquee NY and Webster Hall. A few years ago Pacha was the only EDM club in New York City, which may explain why they had more customers back then. Although this would be the end of Pacha, next year can be the beginning of a whole new era. New name, new staff, new customers, more up and coming Dj’s and a whole new feel of the venue. Sometimes we need a little change in life to appreciate what we’ve had. I look forward to all the upcoming events this last week weeks at Pacha. There will be a huge lineup with artists like Carnage, Markus Schultz, and Pacha’s founding resident and chairman of the board, Erick Morillo will play this weekend to celebrate a Decade of Dance, for its 10-year anniversary party. It is going to be sad for Pacha’s regular weekend residents. But I have to say this is not the end, it is only the beginning of a new era.

Industry Liabilities

The entertainment business can run into many legal liabilities that a company can run into. Whether it is copyright infringement, intellectual property or infringement of a company’s trademark it is important to do your research and make certain that there are no violations of use of a company’s name, trademark, or any form of art, music production that an entertainment business my have. The live music industry can come across many legal issues and controversies that need to be resolved.

A billboard article named, “Lawsuit Accusing SFX Chairman and CEO Robert Sillerman of Cutting Out Early Partners to Move Ahead” describes one recent lawsuit with one of the largest Electronic Dance Music production companies, SFX Entertainment, there was an issue whether EDM promoter Roger Sillerman took the ideas of three partners, Paolo Moreno and manager at Disco Donnie Presents, artist manager Lawrence Vavra and Moreno’s brother Gabriel Moreno., in the case Moreno v. SFX Entertainment Inc., 14-0880, U.S. District Court, Central District of California (Los Angeles).They claim they agreed to a joint partnership agreement with Sillerman where they helped with facilitating the principal assets. They are claim that Sillerman did not pay them any equity of the new company. They claim they never received any stakes in the company’s earnings after they helped with the idea and work of SFX Entertainment. The co-founders of SFX claim they did not receive any shares they were promised to get. According to them, Sillerman cheated them in $100 million revenue. They won the lawsuit on July 9^th after the judge denies Sillerman’s request for summary judgment. Using others ideas, strategies and connections are protected by copyright, intellectual property and trademark law. In my opinion, if Sillerman did steal their ideas there should be a high amount of damages that should be paid to the co-founders.  One cannot merely steal other’s ideas and creating without first getting permission and if so they deserve a portion of the equity made on the project.

In the article “The Meekrat Minefield: Legal Issues with Live- Streaming Apps,”, it describes another legal controversy in the live music industry. The article describes that live streaming can have potential legal issues. Meerkat, Periscope and YouNow are live streaming apps that stream live and broadcasts live videos. There are public performance rights that come into play when live streaming. Broadcast rights and record labels performance rights can be affected, for example when a DJ prerecords a track at a show. In order to properly stream without infringing any copyright proper licensing is required with certain agencies like BMI, SESAC and ASCAP. The Digital Millennial Copyrights Act protects live streaming videos. According to the article, streaming services will be clear if when the user responds to right owners takedown requests and don’t have the “constructive” knowledge that the have committed an infringement. However, it seems as the companies can use the fair use defense. Any company live streaming videos without the permission of the performance, recording or any type of broadcast produced. It is a tricky subject in the matter, because although you would want to get permission, it can also be a process and may take longer to get the permission before the broadcast goes on.

Another controversy in the live music scene is whether small venues are allowed to out on free live music without having a license. In the article, “Government to backtrack on controversial live music laws,” it talks about how the government respond to criticism that live pubs and bar can put free live music without obtaining a license. The Licensing Ace came into affect in 2003, when venues with a capacity of 100 people or under are able to put live music with out having a license. So every venue must go through a licensing process under this act. Venue owners are complaining that the laws are way to strict for and is damaging the music scene. I agree. I don’t think that the laws should be so strict for musicians and artist to be able to perform at a venue. Smaller venues should be exempt and the larger venues should be licensed. The government proposed a “two-bar” exemption, allowing any amplified music by two musicians play in small venues. If the venues are problematic then there may a reason why it would be important to provide licensing. However, if it’s a small quiet venue where people can come an express their music than that shouldn’t be any issues.

Negotiation

When negotiating a deal you, it is important to understand what you are going to negotiate and be sure you are prepared. The goal of negotiation is to get a good deal. In order to come to a win-win conclusion it is important to learn the tactics for an effective negotiation.

Mutual Benefit

The video called "Negotiation: Getting what you want,"  by Margaret Neale, she explained four ways to an effective negotiation. Four steps to achieving a successful negotiation: Assess, Prepare, Ask, Package in order to understand where you are indifferent and what you are going to achieve in the negotiation. Assess the situation in order to change the outcome to get what you want and weight the potential benefits and cost. Next, prepare by understanding what your interests are and understand the interest and preferences of the other party. This will allow you to be prepared by doing your research. Third, ask and engage with the other party. Both sides have information that each other don't have and to share their interests. Last is to package the different issues from each other by proposing solutions by using "If", "Then" language. Using these tactic will lead to do a mutual understanding and both parties will mutual benefit each party.

Separate the people from the problem

In "Getting to Yes Negotiation," an effective negotiation means to separate the people from the problem. Be aware of your emotions as well as the other party's emotions. Perceptions and communication also become a problem. Therefore, active listening and putting yourself in the other's shoes to dealing with the people problem, people techniques, and then with the problem on its merits. In the video the negotiation regarding salary the two parties separate the people from the problem by explaining to each other to focus on the salary and not their relationship. Every time they brought up the relationship, the other party also reaffirms the relationship and focus on the salary. Listening and putting yourself in the other person's shoes helps you understand and make the other party feel respected.

Underlying Interets

In the video “Effective Negotiations,” it teaches you about the process on negotiation and the different strategies and tactics to an effective negotiation. He mentions that negotiation is bargaining for a product or a deal and persuade the other person that it the best thing to do for both parties. It is important that you don’t argue for positions but it becomes a contest of will. According to the video, principled negotiators bargain to seek integrative solutions and focus on the problem rather than the intention and motives. Again they separate the people from the problem. The focus is to come to a win-win situation and focus on what exactly do you want and what benefits your company with and the supplier. This tactic in negotiation is important to reach a compromise.

Using these and other strategies and tactics in my business negotiations will help come to a win-win solution where I will collaborate with the other party and focus on maintaining relationships for future deals. In the entertainment business you need to be able to build ongoing relationships with to be able to continue to work together in future projects.